Polymetals to merge with Southern Cross

Polymetals and Southern Cross Goldfields say the merger will create a new, mid-tier Australian goldminer producing up to 69,000 ounces a year.
Photo: Reuters

Polymetals
and
Southern Cross
Goldfields have announced a merger they say will create a new, mid-tier Australian goldminer producing up to 69,000 ounces a year.

A cashed-up Polymetals had been believed to be on the lookout for acquisitions, as output was waning from its White Dam project in South Australia.

When Polymetals' Mt Boppy project in NSW and Southern Cross's flagship Marda asset in Western Australia come online next year, the new entity would produce up to 69,000 ounces a year, the companies' said.

The larger Polymetals will contribute the bulk of about $13 million in cash reserves, which would better fund Marda's development, they said.